REVOCABLE LIVING TRUST
Anyone 50 years of age or older or younger but in poor health should consider using a revocable
trust as their “will” substitute. A revocable trust can avoid probate and avoid the need for a guardian.
FREQUENTLY ASKED QUESTIONS
What is probate?
It is the family representative rounding up the assets and debts of the deceased; then, following the
probate court rules on paying debts and distributing the assets.
How does a revocable trust avoid probate?
It avoids probate because when you die, only property in your name as sole owner must be probated. All property that is transferred into a revocable trust, will not be probated because the trust continues in legal existence even after you have died.
What if I change my mind and want to amend my trust?
This trust is revocable. That means that you can change your mind and change its provisions by an amendment.
What if I make a trust and put my property into the trust and then decide that I want to sell a piece of property. How do I do it?
Let’s say that you put your vehicle into your trust. Later you decide to sell your vehicle. You will sell your vehicle, just like you always have. Sign the back of the title in the presence of notary. Let’s say you decide to sell your home. A real estate closer will prepare the deed and you will sign on behalf of your trust, as the trustee.
How do I title my property into my trust?
You simply have the ownership titled in the name of the trust. Let’s say you want to put a certificate of deposit into your trust. When the bank is making out the certificate of deposit, have it titled in the name of the trust.
What if me or my spouse goes into a nursing home someday. Will the trust protect our assets for being consumed for nursing care?
No, but a trust improperly drafted can cause problems and make Medicaid planning difficult or impossible. Although a revocable trust will not by itself protect your assets from the Medicaid a properly drawn trust should be Medicaid friendly and not get in the way of Medicaid planning. If you or your spouse are likely to enter a nursing home, you should contact Mr. Coldiron without delay.
How big of an estate should I have before I need a trust?
If you own real property, you need a trust. If you wish for assets to pass down to the issue of your children, if they do not survive you, you need a revocable trust. The situations are numerous that would call for the use of a trust. The value of your estate is not a factor. The primary goal for everyone is to avoid probate and guardianship and to make sure the right person inherits the estate. A trust helps you accomplish these regardless of the size of your estate. Individuals with large estates, may need a special estate tax savings plan built into their trust, whereas someone with a normal or small estate would not.
How much does a revocable living trust cost?
The cost in preparing the trust and accompanying documents is more that the cost of a will. The total cost depends upon what you want the trust to do and how complicated it needs to be. Brent D. Coldiron will give you a quote at the free office conference.